Commitment to reforms and further integration
in the world economy raises hopes for poverty reduction prospects

Beninís recent economic
performance, commitment to structural reform and efforts for closer
integration in the world economy raise hopes of further success in its
steps to alleviate poverty and achieve sustainable growth, according to
a report on the trade policies and practices of Benin released on June
30 by the WTO Secretariat, which also notes that consumer prices have
fallen sharply to controlled levels since the previous review in 1995.

Beninís economy has been opened to new economic operators in certain
activities but also to regional trade, thus boosting competition. The
report notes major developments arising from Beninís undertakings within
the WAEMU (West Africa Economic and Monetary Union) which is
implementing a common trade policy among its members and has gradually
liberalized intra-community trade. Since the first Trade Policy Review,
the full implementation of the Common External Tariff of the WAEMU,
which slightly increased Beninís MFN tariff protection, has led to a
rise in tax revenue from import duties.

Benin (among the poorest LDCs) is one of the countries promoting at the
WTO the sectoral initiative in favour of cotton, which advocates the
phasing out of domestic support for production and of export subsidies,
and the introduction of a financial mechanism to offset any consequent
losses. However, Beninís reforms have not yet enabled a reduction of its
dependence on cotton exports. The report adds that the benefits Benin
could derive from access to markets at both regional and multilateral
levels will not be fully realized until its economy is able to respond
competitively to external demand.

The WTO has provided trade-related technical assistance (TRTA) to Benin
to support the development of human resources, building of institutional
capacity, the implementation of WTO Agreements and for participation in
the Doha Development Agenda. Benin has also received technical
assistance under the JITAP (Joint Integrated Technical Assistance
Programme) and, as from 2004, the Integrated Framework.

The WTO report, along with a policy
statement by the Government of Benin, will be the basis for the second
Trade Policy Review (TPR) of Benin by the Trade Policy Review Body of
the WTO on 28 and 30 June 2004, which will take place at the same time
as the review of Burkina Faso and Mali.

Trade Policy Reviews are an exercise, mandated in the WTO agreements,
in which member countriesí trade and related policies are examined and
evaluated at regular intervals. Significant developments that may have
an impact on the global trading system are also monitored. For each
review, two documents are prepared: a policy statement by the
government of the member under review, and a detailed report written
independently by the WTO Secretariat. These two documents are then
discussed by the WTOís full membership in the Trade Policy Review Body
(TPRB). These documents and the proceedings of the TPRBís meetings are
published shortly afterwards.

Print
copies of previous TPR publications are available for sale from the
WTO Secretariat, Centre William Rappard, 154 rue de Lausanne, 1211
GenŤve 21 and through the on-line
bookshop.

The
TPR publications are also available from our co-publisher Bernan Press, 4611-F Assembly Drive, Lanham, MD 20706-4391, United States.